Acme United Corporation Reports 9% Increase in Sales and 19% Increase in
Net Income for First Quarter

April 17, 2014 09:00 AM Eastern Daylight Time

FAIRFIELD, Conn.--(BUSINESS WIRE)--Acme United Corporation (NYSE MKT:ACU) today announced that net sales
for the quarter ended March 31, 2014 were $19.2 million, compared to
$17.7 million in the first quarter of 2013, an increase of 9%.

Net income was $368,000 or $.11 per diluted share for the quarter ended
March 31, 2014 compared to $309,000 or $.10 per diluted share for the
comparable period last year, an increase of 19% in net income and 10% in
earnings per share.

Net sales for the first quarter of 2014 in the U.S. segment increased
13% compared to the same period in 2013 mainly due to the introduction
of new lawn and garden products and growth of first aid kits. Net sales
in Canada in the first quarter of 2014 decreased 7% in U.S. dollars but
increased 2% in local currency compared to the same period in 2013.
European net sales in the first quarter of 2014 decreased 15% in U.S.
dollars and 21% in local currency compared to the first quarter of 2013
primarily due to the timing of sales to mass market customers.

Gross margins were 36% in the first quarters of 2014 and 2013.

Walter C. Johnsen, Chairman and CEO said, “We successfully completed the
consolidation of our U.S. warehousing operations into our new 340,000
square foot facility in Rocky Mount, NC during the quarter. Also, as
part of the consolidation plan, on April 7, 2014 we sold our former
distribution facility in Fremont, NC for $850,000. We will record a gain
of approximately $200,000 in the second quarter of 2014 related to this
sale.”

The Company’s bank debt less cash on March 31, 2014 was $13.9 million
compared to $15.5 million on March 31, 2013. On August 30, 2013, Acme
purchased the distribution facility in North Carolina for $2.8 million.
Through March 31, 2014, Acme expended $1.3 million to upgrade the
facility and equipment. On August 21, 2013 the Company received $1.7
million from early repayment of a mortgage receivable. During the 12
month period the Company also generated $5.7 million in cash flow from
operations while reducing inventory by $1.5 million, and paid $1.0
million in dividends on its common stock.

ACME UNITED CORPORATION is a leading worldwide supplier of
innovative cutting, measuring and first aid products to the school,
home, office, hardware and industrial markets. Its leading brands
include Westcott®, Clauss®, Camillus®, PhysiciansCare® and
Pac-Kit®.

Forward-looking statements in this report, including without limitation,
statements related to the Company’s plans, strategies, objectives,
expectations, intentions and adequacy of resources, are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties including, without
limitation, the following: (i) changes in the Company’s plans,
strategies, objectives, expectations and intentions, which may be made
at any time at the discretion of the Company; (ii) the impact of
uncertainties in global economic conditions, including the impact on the
Company’s suppliers and customers; (iii) changes in client needs and
consumer spending habits; (iv) the impact of competition and
technological changes on the company; (v) the Company’s ability to
manage its growth effectively, including its ability to successfully
integrate any business it might acquire; (vi) currency fluctuations; and
(vii) other risks and uncertainties indicated from time to time in the
Company’s filings with the Securities and Exchange Commission.